Alain Grisay, F&C chief executive, said: "The first quarter saw a challenging backdrop for investors with upheaval across the Middle East and North Africa, rising oil prices, the natural disaster in Japan and the ongoing European sovereign debt crisis.

However, F&C warned that its review of its strategy was ongoing, particularly in regards to outsourcing.

Mr Grisay added: "While the board review of strategy is ongoing, management's operational focus remains the delivery of strong investment performance, new business generation and the completion of our back and middle office outsourcing project. Overall the business continues to trade in line with management's expectations."

F&C added that the FSA has extended its waiver from meeting any minimum capital requirements until April 2016.